Most people often choose to opt out of having insurance. This is because there are still numerous stigmas and misconceptions about what it is and what they do. To most people, having a policy is only a waste of money. But in reality, they provide massive help when you’re in a pickle.
3 Primary Types of Insurance
- Travel
To some people, this type is right under health. The primary function of this type of protection is to protect you from accidents and other health issues during your travel. Having one is necessary when you know the destination can be expensive or the trip is dangerous.
As a service policy, this is optional and you can always opt out. After all, it’s a rare occasion for someone to claim their travel insurance. The premium is also very minuscule and often included in the travel tickets.
- Product
Automobiles and property insurance fall under this category. While insuring counts as optional, it adds security that will protect you in the future.
Let’s say someone hits you when you’re driving on the road and causes a dent in your car. When you file your claim, the company will pursue the person to pay for the injuries and reimburse you in the meantime.
The premium for a policy can be hefty if you choose to protect all of your assets. But you can always talk with the agent to figure out the best policy that works with your income and activity.
- Health and Life
Purchasing a policy on health is one way to get good health care. In case of sickness or when you need to go to the hospital, the policy will cover you. When you’re in an accident, the companies will divide the responsibility to pay for your recovery.
Life insurance is different because it’s only active when the insured has passed away. The primary function of this policy is to protect your next of kin and loved ones financially after you pass. The amount from the policy will give them the good start they may need to continue with their lives.
Should You Get Multiple Policies
In general, you need at least one policy, which is a health one. This is crucial since it counts toward your savings for the rainy day. Nobody enjoys being sick, and nobody likes it better when they see the hospital bill. But your health insurance will take care of most of the issue so you may only need to pay half or even less.
Insuring your cars and house also can count as saving for a rainy day. You can drive at ease and in case of an accident, you can claim the repair fee from the company. However, you need to ensure that you have the means to pay for the premium and not let it relapse.
Insurance is only one of many methods to protect your assets. You can take numerous policies, as long as you’re capable of paying them. Several policies also act as savings because you can claim the amount after it matures.